Investors Exit Fund Dogged by Probe

By

Jenny Strasburg and

Juliet Chung

Updated Feb. 15, 2013 6:49 p.m. ET

Clients of SAC Capital Advisors LP moved to pull $1.7 billion from the hedge-fund firm, or roughly a quarter of outside investors' money, as an insider-trading investigation weighed on confidence in the money manager.

SAC will pay out about $660 million next month to investors who had requested withdrawals ahead of Thursday's deadline, people familiar with the matter said, adding that the firm will return the remaining money over the...